A talk about the digital revolution and its effects in the freight industry.

1. Digitization of the
transport industry
More than digital pieces of paper
!
!
Per Olof Arnäs
Chalmers
@Dr_PO
per-olof.arnas@chalmers.se
about.me/perolofarnas

2. CC-­‐BY
Per
Olof
Arnäs
Technology
Management
and
Economics
Logis4kcs
and
Transporta4on

3. 1989
CC-­‐BY
Per
Olof
Arnäs
Technology
Management
and
Economics
Logis4kcs
and
Transporta4on

4. 1989
Map on the wall with pushpins
Delivery notes
(3 carbon sheets)
Radio
Telephone
Pens in various
colours
CC-­‐BY
Per
Olof
Arnäs
Prices, phone
numbers etc.
Technology
Management
and
Economics
Logis4kcs
and
Transporta4on
Calculator
Cardfile of
customers, tank
sizes etc.

5. 1989
Ca 100 customers
in west Sweden
6 tanker trucks
(7 partitions per vehicle)
Products:
Gasoline 95
Gasoline 96
Gasoline 98
Diesel
Diesel, colored
8-10 Pricing (yesterday’s orders)
10-12 Call and receive tomorrow’s orders
13-17 Planning
A FULL TIME JOB!
CC-­‐BY
Per
Olof
Arnäs
Technology
Management
and
Economics
Logis4kcs
and
Transporta4on

6. Digitization of the
transport industry
More than digital pieces of paper
!
!
Per Olof Arnäs
Chalmers
@Dr_PO
per-olof.arnas@chalmers.se
about.me/perolofarnas

7. The Internet first became available for
Swedish consumers around 1993
+
=
A (bad and expensive) mix between
Teletext and the Yellow Pages
Not very pretty
Few people with
computers

8. 15 years later, in 2008, Google Flu
Trends was launched
Based on what
people google and
where their
computer is located
www.google.org
Ten days ahead
of the official flu
tracker

9. How
will
we
use
the
technology
in
10
years?
lm
a
st
o
We have no idea.
!
The girl and the iPad by Niclas Lindh on Flickr (CC-BY)

10. How
will
we
use
the
technology
in
10
years?
lm
a
st
o
We have no idea.
!
...and neither does she,
but she will be dissatisfied
with stuff that we think are
pure science fiction and
almost magic.
The girl and the iPad by Niclas Lindh on Flickr (CC-BY)

12. The Transport
industry
3 things:
Per Olof Arnäs
Carbon-free transport by Stéfan on Flickr

13. …physical
3d boxes by crystaljingsr on Flickr

14. …public
CC-­‐BY
Per
Olof
Arnäs
Technology
Management
and
Economics
Logis4kcs
and
Transporta4on
Traffic Jam by Giorgio Minguzzi on Flickr

15. …analogue
542 miles by Jason on Flickr
CC-­‐BY
Per
Olof
Arnäs
Technology
Management
and
Economics
Logis4kcs
and
Transporta4on

17. Development of transportation
technology has been
fairly linear
…for the last 5500 years
Per Olof Arnäs
Stage Coach Wheel by arbyreed on Flickr

18. inning
beg
We are in the middle of a gigantic
exponential development curve

19. A new global eco system where new
types of, knowledge based, industries
compete with traditional ones

20. Startups don’t
compete with airlines...
by purchasing a bunch of
hiring a bunch of
and locking up a bunch of
planes
pilots
terminals at airports.
Miniature Airport by disparkys on Flickr
http://bryce.vc/post/18404303850/the-problem-with-innovation

21. Startups don’t
compete with airlines...
by purchasing a bunch of
hiring a bunch of
and locking up a bunch of
planes
pilots
terminals at airports.
Startups compete with airlines by
inventing videoconferencing.
Miniature Airport by disparkys on Flickr (CC-BY,SA)
http://bryce.vc/post/18404303850/the-problem-with-innovation

23. Addicted to dead trees

25. Physical flow
Original? Copy?
Ownership
Consignor
Consignee

26. In Search Of Lost Time by bogenfreund on Flickr
The biggest problem in
transportation is time.
There is not enough of it.
Ever.

27. Time horizons
Strategic
Tactical
Operational
Prognosis
Realtime!
We are approaching
this boundary
…and we are
starting to
move past it!

28. Digitization fronts
Goods
Vehicle
Business
process
Infrastructure

29. Digitization fronts
Goods
Vehicle
Order handling
Driver support
Vehicle economics
Barcodes
RFID
Sensors
ERP systems
TMS systems
E-invoices
Cloudbased
services
RDS-TMC
Road taxes
Active traffic support
Business
process
Infrastructure

30. What happens
when access to
real-time data
increases?
Strategic
Tactical
Operational
Prognosis
Infrastructure
Business
processes
Vehicles
Goods
not quite clear on the concept by woodleywonderworks on Flickr (CC-BY)

31. t
a
iz
it
ig
D
n
io
Incre
asing
good
s volu
mes
Opportunities
New
techn
olog
y
al
tic
oli
P
st
re
te
in
Quad Aces by fitzsean on Flickr

32. We produce vast
amounts of data
Locals and Tourists #1 (GTWA #2): London by Eric Fischer on Flickr

33. All the time.
Locals and Tourists #1 (GTWA #2): London by Eric Fischer on Flickr

34. Gartners Hype Cycle for Emerging Technologies
Augmenting
humans with
technology
Machines
better
understanding
humans and
the
environment
Machines
replacing
humans
Humans and
machines
working
alongside each
other
Humans better
understanding
machines
Machines and
humans
becoming
smarter
Source: Gartner August 2013
http://www.gartner.com/newsroom/id/2575515

35. Gartners Hype Cycle for Emerging Technologies
Source: Gartner August 2013
http://www.gartner.com/newsroom/id/2575515

36. Gartners Hype Cycle for Emerging Technologies
?
Source: Gartner August 2013
http://www.gartner.com/newsroom/id/2575515

37. So…
What are we
doing about
all this?

38. Northern LEAD
Logistics Research Centre
Founded by:
Chalmers University of Technology
University of Gothenburg
Logistics and Transport Society LTS

39. What we do
Northern LEAD coordinates and supports logistics
research at Chalmers and University of Gothenburg
in order to increase volume, quality and
relevance of the research
stairs by Denis Jacquerye on Flickr

40. Tomorrow’s logistics. We are finding the answers.
Around 70 researchers
Five core research
groups
Collaboration between
Chalmers and University
of Gothenburg
Research centre for
sustainable logistics
solutions
Organises, facilitates,
disseminates highly
relevant logistics
research

41. This high quality research
contributes to
… a sustainable logistics
development
…gives companies
competitive advantages
…and benefits society
Green Leaf of a Bio Plant in Nature by epSos .de on Flickr

42. Five core
research groups
Industrial marketing
& purchasing
Logistics &
Transport
Physical
Distribution
Professors
Visiting Professors
Associate Professors
Post docs
Faculty
PhD students
Total
10
6
5
6
14
32
73
Production
Logistics
Optimization

43. Challenges
and trends
Environmental
impact
Focused areas
Logistics and Production Networks
Outcomes for
policy and
business
Long Distance Transport
Resource
limitations
Urban Transport
Demographic
changes
Manufacturing
and retail
revolution
Complexity and
structural
flexibility
Volatility and risk
Purchasing of
transport
Information,
planning and
control
Service
development in
networks
Intermodality
Resource
utilisation
Measurements
and measuring
Thought leadership
through
high quality
research and
innovation

44. Project proposal:
Smart access/guidance control

45. Project proposal:
Smart access/guidance control

46. Project proposal:
Smart access/guidance control

47. Project proposal:
Smart access/guidance control

48. Project proposal:
Smart access/guidance control

49. Project proposal:
Smart access/guidance control

50. Project proposal:
Smart access/guidance control

51. haring
Data s
Exp
del andi
iver
ng
y fr
ont
ic
am uts
yn tc
D or
sh
Foliate
d
transp
ortatio
n
netwo
rk
nd by
Sta
ents
shipm
S
me
o
r
he
ot
Realtime
applications
nt V2I
Intellige
ication
ommun
c
Super Cat by Photo Extremist on Flickr
oon
lat g
P
kin
par

52. Not all ideas age with grace

53. Someone must do the work

54. Not everyone will want
to adopt new things…

55. …or change
habits

58. From order to invoice
Basic data
From/To/What/When
Owner: the customer
Resource allocation
What vehicle?
Owner: Traffic controller
Cargo information
Loaded amount
Owner: Supplier
Proof of Delivery
Time/date/signature
Owner: Driver
Pricing
Owner: Financial dept.
Enough information to create invoice
All of these steps cost money!

59. An increase in the number of
orders lead to increased cost
Total cost for
administration of
all orders
Goal: De-couple the
dependecy between
administative cost and
order volume
Handle exceptions –
not transactions!
Number of orders per year

60. 2 hours
4 hours
2 hours
1989:A FULL TIME JOB!
CC-­‐BY
Per
Olof
Arnäs
Technology
Management
and
Economics
Logis4kcs
and
Transporta4on

61. 0 hours
1-2 hours
0 hours
2013: TWO HOURS. MAX.
CC-­‐BY
Per
Olof
Arnäs
Technology
Management
and
Economics
Logis4kcs
and
Transporta4on

62. How
will
we
use
the
technology
in
10
years?
so
e
m
We have no idea.
!
!
Per Olof Arnäs
per-olof.arnas@chalmers.se
about.me/perolofarnas
@Dr_PO
Slides published on slideshare.net/poar
The girl and the iPad by Niclas Lindh on Flickr (CC-BY)

63. Kolla gärna in min
crowdsourcade
logistikblogg
Logistikfokus.se
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troligtvis enda)